Supply Chain by the Numbers: Week of "CSCMP 2009"
   
 

-September 25, 2009
   
 

This Week’s "CSCMP 2009 Edition" Supply Chain by the Numbers – Intel Atom Chip Supply Chain Costs, Packaging Optimization at Wal-Mart, Transportation Analytics Technology at Clorox, Traveling by Buyers at Pier 1

   
 

The Supply Chain and Logistics Numbers Worth Knowing This Week: Necessity is the Mother of Re-Invention at Intel, The Best Things for Wal-Mart Come in Small Packages, Clorox Bleaches Out Savings with Transportation Analytics Technology, Pier 1 Buyers Traveling Off the Beaten Path

   
 
 
 

70 cents

The supply chain cost per unit that Intel needed to get to for its new Atom chip, versus about $5.50 for traditional chips, as the Atom sells for just $10 to $20, versus $100 for existing higher-end chips. By totally reinventing its supply chain, Intel has come close to achieving that number, in large part by moving to a make-to-order manufacturing model.
 
 



 

$3.5 million

Total supply chain cost reduction from Wal-Mart’s packaging optimization efforts for its Kids Connection line of children’s electronics/toys, as a result of less packaging expense and shipping some 727 fewer containers each year from Asia, due to lower cube per unit.
 
 
43%

The percent of lane-carrier combinations with freight spend that are more than 10% above contracted rates coming from carrier bid/sourcing commitments, according to John Wooten of Clorox; this “leakage” comes from many sources, Wooten says, and new transportation analytics technology at Clorox has reduced this number to just a 1-3% delta from contracted levels, saving millions.
 
 
 
 
90-120

Number of days the 22 US-based buyers at retailer Pier 1 Imports spend on foreign soil each year, according to Chief Supply Chain Officer Greg Rake. Part of that is literally going into small villages in Asia and Africa looking for unique merchandise that big box competitors won’t find too.